Ch 25: Excel Simulation ? - 6 x Prepare a make or buy analysis - Excel FORMULAS DATA REVIEW FILE VIEW Sign In HOME INSERT PAGE LAYOUT 1 Font 25 point Swood -AA Past Alignment Number Conditional Formats Cell Cells Editing Formatting Table Styles Opor Styles AI Le Alanco, Inc, manufactures a variety of products and is currently maunfacturing all 3 c D H 1 Alanco, Ing manufactures a variety of products and is currently mounfacturing all of its own component parts. 2. An outside supplict has offered to sell one of those components to Alanco. To evaluate this offer the following 3 information has been gathered relating to the cost of producing the component internally 4 5 Direct materials S 4.00 6 Direct labor 6.00 7 Variable manufacturing overhead 2.00 Fixed manufacturing overhead, traccable 5.00 . Fixed manufacturing overhead, common but allocated 800 10 Total cost S 25,00 11 12 Supplier price 5 21.00 14 Units used per year 12.000 15 16 Fixed manufacturing overhead, traceable is composed of two items Depreciation of equipment (no resale value) 10% IN Supervisor salary 70 19 2011. Asuming the company has no alternative use for the facilities now being used to produce the 2 component, complete the following analysis to determine if the outside supplier offer should be accepted 17 22 M Graw HAI Prey 1 of 1 18 Next cel Simulation Saved Calibri - 11 inn 12 Paste BIU- - -AA % Alignment Number Conditional Format as Cell Cells Editing Formatting Table Styles Styles fo Alanco, Inc. manufactures a variety of products and is currently maunfacturing all Clipboard Font X B D E F G H 1 - 17 18 16 "Fixed manufacturing overhead, traccable is composed of two items: Depreciation of equipment (no resale value) 30% Supervisor salary 70% 20 1. Assuming the company has no alternative use for the facilities now being used to produce the 21 component, complete the following analysis to determine if the outside supplier's offer should be accepted. 19 22 23 Per Unit Differential Cost 12,000 units 24 Make Buy Make 25 26 Cost of purchasing 27 Direct materials 28 Direct labor 29 Variable manufacturing overhead 30 Fixed manufacturing overhead, traceable 31 Fixed manufacturing overhead, common 32 Total costs 33 34 Based on this analysis, write an if statement to determine if Alanco should make or buy the component. Alanco should the component 35 36 37 38 Sheet1 Prey 1 of 1 Next McDolci